Taiwan's Modern Miracle

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Thanks for reading! If you haven’t subscribed, please click the button below:Subscribe nowBy subscribing, you’ll join over 80,000 people who read Apricitas!If people are mining for gold, it’s good to sell shovels. And if there’s a gold rush, it’s good if 30% of your nation’s economy is based on shovel manufacturing. Taiwanese GDP rose at a mammoth 23.6% annualized rate in the last quarter of 2025, the fastest pace since the nation’s initial recovery from the 2008 recession, as ravenous demand for AI chips from Taiwan Semiconductor Manufacturing Company (TSMC) buoys the nation’s economy. Growth in net exports has driven the vast majority of this boom, as data center builders in the US, China, and beyond try to get their hands on as much compute as possible.Overall, the Taiwanese economy has grown more than 12% over the last year, the fastest annual growth rate in nearly 50 years, and GDP has increased almost 23% since the launch of ChatGPT in late 2022. Industrial production and export orders have both hit record highs. Gross exports exceed $63B per month, more than double the pre-COVID average. Manufacturing now makes up nearly 40% of the nation’s economy, the highest since the late 1980s. The global rush for artificial intelligence has been a massive boon to the island nation, pushing its economy back to the growth rates that characterized its post-WWII economic miracle.Yet Taiwan’s still caught in a difficult position as the world’s largest producer of cutting-edge chips and the primary manufacturer for AI chip designer NVIDIA. On one side of it is China, Taiwan’s chief g…